U.S. Committee on the Judiciary to hold a session around cryptocurrency impact on democracy

22 June 2018

As political campaigns are allowed to accept cryptocurrencies as donations, the U.S. Senate will be holding hearings on evaluating the influence of the digital currencies on the democracy and elections in the United States.

Subcommittee on Crime and Terrorism will conduct a session titled ‘Protecting Our Elections: Examining Shell Companies and Virtual Currencies as Avenues for Foreign Interference’ scheduled for June 26, according to the notice published on the website of the U.S. Committee on the Judiciary.

The session will be chaired by Lindsey Graham, a senator for South Carolina. The posting provides no more details on the hearing and the list of participants.

In 2014 a ruling was passed by the Federal Election Committee, allowing political groups and parties to conduct their campaigns and accept Bitcoin as a donation pursuant to the applicable federal law. The cryptocurrency is viewed by the Committee as an in-kind donation similar to bonds, securities and other assets. Meantime, the ruling imposes some restrictions on the amount allowed for donation.

The session may focus on discussions around the donors making contributions in cryptocurrencies to the political actions across the nation. According to Politico report published in May, Brian Forde, a former White House senior advisor in the Office of Science and Technology Policy during the Presidency of Barack Obama, successfully collected about $200 thousand worth of cryptocurrencies, and over $5,000 were contributed from his own pocket.